IV. INSTITUTIONAL UNITS AND SECTORS
G. The non-profit institutions serving households sector (S.15)
| 4.161. | Non-profit institutions are legal or social entities created for the purpose of producing goods or services whose status does not permit them to be a source of income, profit or other financial gain to the units that establish, control or finance them. Although they may not be a source of profit to other institutional units, NPIs may nevertheless be market producers if they provide services for which they charge prices or fees that are economically significant - that is, prices which have a significant influence both on the amounts the producers are willing to supply and on the amounts purchasers wish to buy. NPIs that are market producers are classified as belonging to one or another of the corporate sectors. Market NPIs include all NPIs serving enterprises, except those controlled and mainly financed by government units. The majority of NPIs, however, are likely to be non-market producers that provide goods or services to other institutional units either free or at prices or fees that are not economically significant. |
| 4.162. | Non-market NPIs may be divided into those controlled and mainly, or entirely, financed by government units and the remainder. The latter are described as "NPIs serving households" (NPISHs) and constitute a separate sector within the System. NPIs serving enterprises belong to the corporate or general government sectors depending upon whether they are controlled and mainly financed by government units. To summarize, therefore, the sector NPISHs is defined as the set of all resident NPIs except:
(a) NPIs that are market producers; and
(b) Non-market NPIs that are controlled and mainly financed by government units.
The NPIs serving households sector includes the following two main kinds of NPISHs that provide goods or services to their members or to other households without charge or at prices that are not economically significant:
(a) Trade unions, professional or learned societies, consumers' associations, political parties (except in single party states), churches or religious societies (including those financed by governments), and social, cultural, recreational and sports clubs;
(b) Charities, relief and aid organizations financed by voluntary transfers in cash or in kind from other institutional units. |
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